Investors are becoming too optimistic about the world economy

American inflation, Europe’s energy crisis and China’s zero-Covid-19 policy are still enormous problems.

Following increased inflation concerns, the Dow Jones Industrial Average fell 403.89 points, or 1.34%, on Friday. PHOTO: AFP
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A rare surge of optimism is running through financial markets.

For most of 2022, America’s high inflation has proved troublingly persistent, Europe’s energy crisis has threatened a deep recession and China’s economy has been plagued by Covid-19 lockdowns and a property bust.

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